13. On December 31, 20x2, the machinery remains unsold. The fair value of the machinery on December 31, 20x2 is P700,000 while costs to sell are estimated at P50,000. The entity decreased the sale price to P650,000. Which of the following shall be recognized by the entity in its 20x2 financial statements? Held for sale asset a. P700,000 b. P650,000 Impairment loss P100,000 P100,000 C. P650,000 P150,000 с. d. PO P100,000
13. On December 31, 20x2, the machinery remains unsold. The fair value of the machinery on December 31, 20x2 is P700,000 while costs to sell are estimated at P50,000. The entity decreased the sale price to P650,000. Which of the following shall be recognized by the entity in its 20x2 financial statements? Held for sale asset a. P700,000 b. P650,000 Impairment loss P100,000 P100,000 C. P650,000 P150,000 с. d. PO P100,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 11MCQ
Related questions
Question
Topic: Non-Current Assets Held for Sale and Discontinued Operations
13. Which of the following shall be recognized by the entity in its 20x2 financial statements?
Held for ale asset Impairment loss
a. P700,000 P100,000
b. P650,000 P100,000
c. P650,000 P150,000
d. P0 P100,000
13. Requirement: Provide the
Transcribed Image Text:13. On December 31, 20x2, the machinery remains unsold. The
fair value of the machinery on December 31, 20x2 is P700,000
while costs to sell are estimated at P50,000. The entity
decreased the sale price to P650,000. Which of the following
shall be recognized by the entity in its 20x2 financial
statements?
Held for sale asset
a. P700,000
b. P650,000
Impairment loss
P100,000
P100,000
P150,000
c. P650,000
d. PO
P100,000
14. Requirement: Provide the journal entry on December 31, 20x2.
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